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NAMA and Lloyds face struggle to sell Battersea Power Station

There is no ready buyer for the giant Battersea Power Station site in central London, it has emerged, with NAMA and fellow lender Lloyds only beginning their official search from next week.

They will hear presentations from estate agents next week as a whole new sales process gets under way. 'Property Week', the UK industry bible, this week estimated the guide price for the site will be about £500m (€595m), but the costs of redeveloping the site will be a multiple of this.

This week NAMA and Lloyds applied to the UK courts to wrest control from Real Estate Opportunities (REO), which has been developing the site since 2006.

In a major blow, the site will now be developed by another company, although it is unclear whether there is any appetite to develop a site on this scale.

Sean Mulryan, a fellow Irish developer, is also active in the nearby area, developing the Nine Elms site, and this week it was announced it had landed retailer Waitrose as an anchor tenant for its project.

REO is majority-owned by Treasury Holdings, which has been paid fees over several years.

NAMA is also looking to offload the planned headquarters of Anglo Irish Bank in Dublin's docklands, with the Irish Central Bank reported to be favourite to move into the site. But the deal has several weeks of negotiation ahead and there is no certainty yet that the Irish Central Bank will be the eventual tenant, said a source.

Meanwhile, the chairman of NAMA, Frank Daly, said he was hoping NAMA could "stabilise'' the Northern Irish market.

However, he said he was clear the agency was capable of taking a longer-term approach where necessary and reiterated that NAMA was not interested in disposals at fire-sale prices.

"The chairman stressed that the agency is committed to listening to stakeholders in Northern Ireland with a view to helping devise tailored solutions for the local marketplace,'' said a NAMA statement.

"We want to ensure that our approach is appropriately tuned for the Northern Ireland market. We have developed good relationships with policymakers in Northern Ireland and other stakeholders and we will continue to listen carefully to what they have to tell us."

Irish Independent